Crises of Paul Crugman - "the economic world is a surprisingly dangerous place"


Paul Crugman, 2008 Nobel Prize of Economics lauderate, have just came with Crises, his "Mea Culpa". His view of the reasons that almost all economists, himself included, failed to see the financial crisis before it stuck us all.

He ends the article like this:
And despite the praise being handed out to those who helped us avoid the worst, we are not handling the crisis well: fiscal stimulus has been inadequate, financial support has contained the damage but not restored a healthy banking system. All indications are that we’re going to have seriously depressed output for years to come.
...
Maybe policymakers will become wiser in the future. Maybe financial reform will rduce the occurrence of crises: major financial cises were much rarer between the end of Worl War II and the rise of fincancial deregulaiton after 1980 than they were before or since. Menwhile, however, the fact is that the economic world is a surprisingly dangerous place.

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